20 money lessons to start the new year

As the new year begins, it's the perfect time to set financial resolutions that will help you grow your wealth and improve your financial wellbeing. We asked leading finance experts to share their top five tips for navigating your money in 2025.

From maximising your superannuation to taking advantage of automation and AI, here are smart strategies to help you reach your money-related goals in the new year.

Five tips for superannuation

Peter Hogg, general manager of guidance and advice at Aware Super, shares his essential tips for ensuring your super works hard for you:

1. Engage with your super 

Getting in touch with your super fund, be it online, via the app or speaking to a superannuation expert means you'll know how your super is growing, and importantly pick up on any unusual activity from attempted scams.

2. Check your investment portfolio 

When you retire, 50% of your superannuation balance is made up from investment returns so it's important to be in the right investment portfolio.

If you're further from retirement, high growth might be better suited.

Aware uses MyLife cycle investment approach so those members with a higher risk tolerance are automatically placed in high growth. Check in with your fund so you're maximising those returns.

3. Turning 60

If you, or maybe your parents, are turning 60 this year, it may be time to open a transition to retirement or a Retirement Income Account.

Not only does turning your super into an income stream mean it attracts 0% tax on income payments, you'll also be able to take advantage of the Retirement Income bonus - so don't leave money on the table by leaving your super in accumulation.

4. Understand your finances for the year ahead

The New Year is a great time to take a look at your budget and see if there is any room to make a personal contribution to your super.

Don't forget superannuation is a tax advantaged world so there could be some extra tax benefits as your money grows. Check with your super fund to determine how much you can still contribute to stay within the limits.

5. Access advice

We know our members who access advice retire more successfully, so if you have the chance to attend a webinar or seminar, or use an online calculator like My Retirement Planner, you'll understand the steps you can take to improve your chances of a successful retirement.

Five personal finance tips

Rachel Wastell, a personal finance expert at Mozo, offers actionable advice to save, invest, and cut costs in 2025:

1. Leverage green loans to cut interest and energy costs

With banks increasingly offering cheaper green loans to build collateral for green asset backed securities, 2025 presents a prime opportunity to finance energy-efficient home upgrades and reduce the amount you spend on energy when the government energy bill rebates end.

Banks are introducing green loans that offer a lower rate than their standard counterparts, and governments are offering new rebates to support the growth of clean energy.

As sustainability becomes a greater focus - driven by both market demand and government backed initiatives - we'll likely see more competitive green loan rates emerge, making sustainable home upgrades more affordable.

2. Automate your savings and investments

2025 is a year to set it and forget it! Automating transfers to your savings or investment accounts ensures you're building wealth without the temptation to overspend.

Figure out how much you can realistically put aside, and set up a recurring transfer for when money comes in.

3. Use AI to simplify, but don't become over-reliant

AI-driven budgeting apps are on the rise, but don't rely on them blindly. The smartest way to budget using these tools is to track your spending trends, but regularly review your budget so you know where your money is going. Awareness is key.

4. Cut down on regular expenses, and switch if you can

Start the year by reviewing your big bills, like home loans, energy, and insurance. Check the rate you're paying, then compare it to other providers to see if you could save.

Refinancing or negotiating better rates could free up the money you need to build your savings or afford your next holiday, and help you to give yourself a rate cut before the RBA moves.

5. Budget with a goal in mind

Whether it's a holiday, a home deposit, or simply peace of mind, having a clear savings goal makes budgeting easier and more motivating.

Define what you're saving for and track your progress, because the reward of achieving that goal will motivate you to save even more next time.

Five opportunities in investments

Thomas Wickenden, investment strategist at Betashares, shares three investment trends for 2025 and offers two pieces of practical advice on how to seize the opportunities:

1. Large-cap US equities to outperform

We expect US equities to continue to outperform the rest of the world, but we think an emerging investment trend for 2025 may well be a rotation within US equities.

Recent growth in the US has been driven by a small number of mega-cap technology stocks.

We believe in 2025 the rest of the large-cap market, the S&P 493 (accessed through an S&P 500 equal weight exposure), will play catch up due to their lower valuations, strong expected earnings growth, and greater exposure to the US economy and incoming President Trump's flagged stimulus policies.

2. India: The new global player

India is expected to cement its role as the global growth leader in coming years with the highest expected GDP growth of major economies.

Corporate India is cashing in on this growth through a consumption boom driven by India's large and young population, capital flows through foreign direct investment nearing $US100 billion per year and growing domestic investor participation, and the Modi Government liberalising business regulations and investing heavily in infrastructure. Look for Indian equities to be leaders among emerging markets in 2025.

3. Aussie market underappreciated

While there has been much talk about the performance of Australia's banks, we feel there are areas of Australia's equity market that have gone underappreciated but may emerge into the mainstream in 2025.

For instance, Australia's technology sector outperformed US counterparts in 2024 while an ETF holding 40 of the highest quality companies on the ASX doubled the S&P/ASX 200's performance. We think investors will increasingly look to these pockets of Australia's market to seek out further growth from Australian equities.

4. Set your goals for 2025

One of the most common investing mistakes is not setting or sticking to your investment plan.

Having a clear plan in place to reach your investment goals, including building a strategy and desired asset allocation, investment frequency, and a framework to review these building blocks is the first step with any investment journey. Start with your goals and then set your plan to avoid getting caught up in market fads or trying to time the market.

5. Remember to stay diversified

It can be very tempting to chase areas of the market that have recently performed well thinking if you had put all our assets in that stock or fund you would be so much better off.

But if the market moves against you the results can burn. Staying diversified allows investors to take on appropriate levels of risk and return in various market scenarios and can often lead to a higher return for the same amount of risk over the long-term as a non-diversified portfolio.

Five opportunities in property

Alex Gee, mortgage broker and director of Kingfisher Finance Group, shares what's next for the property market for homebuyers in 2025:

1. Mortgage brokers are more crucial than ever

With up to 80% of Australians expected to rely on brokers in 2025, their role in navigating complex borrowing conditions is invaluable. Brokers have access to a wide range of lenders, enabling them to secure competitive deals tailored to your needs. They also help demystify changing policies and regulations, lender incentives, and refinancing opportunities, saving you time and potentially thousands in costs. Whether you're a first-time buyer or a seasoned homeowner, leveraging a broker's expertise ensures you make informed decisions in a dynamic market.

2. Prepare for rate adjustments

While rates are anticipated to eventually fall in 2025, predicting exact movements remains challenging. When rates do fall, a highly effective strategy is to maintain your repayments at the higher, pre-reduction level. By doing so, you'll reduce your loan principal faster, saving significant interest over the life of the loan.

Additionally, utilising offset accounts and redraw facilities enhances this approach. Depositing savings into an offset account reduces the interest charged while keeping your funds accessible, and redraw facilities offer flexibility to access additional repayments if needed. This combination of consistent extra repayments, and offset feature ensures you build financial resilience and stay ahead in a dynamic market.

3. Unlock your home's equity

If your property has increased in value, you can tap into your home's equity for strategic purposes. Options include funding renovations to boost property value, consolidating high-interest debts, or investing in other assets like shares or an investment property. You may also consider 'debt recycling', a strategy where you convert non-deductible home loan debt into tax-deductible investment debt. Work with a financial planner to ensure this approach aligns with your financial goals and risk tolerance.

4. Protect your credit history

Your credit history is often the biggest hurdle in securing a home loan. Even small mistakes, like multiple credit applications or delayed repayments, can signal financial instability and hurt your chances. Missing payments for months on end may result in a default being listed and impacting you for years.

Even those with strong finances - such as significant savings or existing up to date home loans can face setbacks from a small single oversight, like forgetting a $2,000 credit card payment. This can lead to long-term consequences. Protect your credit score by staying on top of repayments, avoiding unnecessary enquiries, and addressing issues promptly. Small actions now can save years of frustration.

5. AI, data, and open banking

Open banking and AI-driven tools are transforming lending in 2025. By providing lenders with access to your financial data, these technologies will enable them to offer highly personalised options and competitive rates. Stay organised and explore the benefits of open banking for better financial opportunities.

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